b"OTHER LEGISLATION CHANGESC14 RATEDECISION When: 1st January 2025 Industry experience will not be based on a certainKey Changes:number of hours worked Employees are not required to retain a record of'C14 has become the term coined to reference pay previous hours worked in order to substantiate therates within the Modern Awards which fell below the requisite experience with a new employer National Minimum Wage (NMW) when the NMW was It would be unnecessarily complex to require theincreased to be higher than the C14 rate for the first employee to evidence that the previous industrytime on 1 July 2023. experience was acquired within a certain timeframe There is no timeframe within which the industryThe C14 decision relates to how the 70 Awards which experience must have been obtained contain this lower rate are treated to ensure thatemployees cannot remain indefinitely on a pay ratewhich is lower than the NMW. The Commissions objectives which are evident through What it is: the various decisions released are important and can be The Fair Work Commission hassummarised as: published its decision on theThe C14 rate is only for the initial phase of review of C14 rates with 70induction, training and basic skills acquisition and Awards impacted.the C13 rate should be the lowest rate applicable toongoing employment that extends beyond this Some awards to be amended to There is no proper basis for employees engaged in be varied to provide automatic longer term employment who have gained basic progress to next level (C13) after proficiency in their duties to remain indefinitely at a set period. the C14 rate Any classification rate in a modern award which isbelow the C13 rate (including but not limited to theC14 rate) must be an entry-level rate whichoperates only for a limited period and provides aclear transition to the next classification rate in theaward (which must not be less than the C13 rate)Practical Tips for Employers: 1)Check for any applicable Awards (do you have employees engaged under one of the 70 Awards impacted?) 2)Review employee tenure for those currently paid C14 equivalent rates in line with progression timeframes under the applicable Award 3)Budget for the nancial implications of increases if and when they will be needed Page | 14 IR Update July 2025"